This category includes the costs of fabrication, assembly, and testing of production models; establishment of the initial logistic support requirements;
facility construction; production operations and quality control; development of training courseware; and the integration of a software support plan. Costs
associated with maintainability in this phase are primarily driven by initial operational test and evaluation, and demonstration testing. For the first time,
the focus is on software and BIT, and close surveillance is required to anticipate and correct problems. Costs incurred during R&D and P&C
should be viewed as an investment to ensure product availability and a low total cost of ownership.